COMPTROLLER AND AUDITOR
GENERAL (CAG) PART -2
CAG
Comptroller and Auditor
General of India

ARTICLES RELATED TO CAG
.148-COMPTROLLER AND AUDITOR GENERAL OF
INDIA.
.149-DUTIES AND POWERS OF CAG
150-FORM OF THE ACCOUNTS OF UNION AND
STATE.
151-AUDIT REPORTS

DUTIES AND POWERS
Article 149 authorizes parliament to prescribe duties and
powers of CAG
Parliament enacted the CAG's( Duties, Power , Condition of
service)act,1971.
Act was amended in 1976 to separate accounts for audit in
the Central government
Audits the accounts related to all expenditure form
1.Consolidated fund of India
2.Consolidated fund of each state.
3.Consolidated fund of each union territory having a
egislative assembly

OHe audits all expenditure forms
1.Contingency fund of India
2.Public account of India and states
Any department of the central govt. and state govt.
Audits the receipts and expenditure of th centre and the
state
OAudits the accounts of any other authority when requestec
by the President or Governor
For ex: audit of local bodies.
Advises the President with regard to prescription of the form
in which accounts of the Centre and State shall be kept(article
150)
He submits his audit reports relating to accounts of the
centre to President, who shall in turn ,place them before
houses of the parliament(article151)

OHe submits his audit reports relating to the accounts of a
state to a governor ,who shall in turn,place them before the
state legislature(article 151)
oHe ascertains and certifies the net proceeds of any tax or
duty(article-279)
His certification is final -the net proceeds means the proceed
of a tax or a duty minus the cost of collection.
He acts as a guide , friend
Oln 1976,he was relieved of his responsibilities with regard to
the compilation and maintenance of accounts of the central
govt. due to separation of accounts from audit , this is
departmentalization of accounts.

IMPORTANT POINTS
CAG submit three audit report to the President
1.Audit report on appropriation of accounts
2.Audit report on finance accounts
3.Audit report on public undertakings
OPresident lay these reports before the both the houses of the
parliament.
After this -public accounts committee examine
CAG is an agent of the parliament and conducts audit of
expenditure on behalf of the parliament.
Therefore, he is only responsible to the parliament.
OCAG has no control over the issue of money from consolidated
fund of India and many departments are authorized to draw
money by issuing cheques without specify authority from CAG
which is only concerned at the audit stage when expenditure has
already takenprace

CAG AND CORPORATIONS
1.Some audited totally and directly by CAGG
2.Some audited by private professionals auditors (appointed
by CG in consultation with the CAG
CAG can conduct supplementary audit
3.Some :totally subject to private audit (no role of CAG)
Role of CAG in govt. corporation is also limited :by private
auditors(appointed by govt.)+ CAG can supplementary audit.
In 1968 audit board was established including 2 members
and chairman appointed by CAG
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